The above pattern is the major Topping Formation that is a Multi-Century Top. This is a Broadening Top, Megaphone Top pattern. These patterns are reliable and appear at tops. This one is huge, as it should be for the conclusion of a multi-century rally.

There is a pattern that just jumps out at us, which is our highest probability scenario for the big picture. We now believe that the Grand Supercycle degree wave {III} top did not occur at the January 14th, 2000 top, and did not occur at the October 2007 top. We believe those tops were waves (A) and (C) of a massive Megaphone Top pattern in stocks.

What is intriguing about this scenario is that each wave has three subwaves, that the pattern has five waves (key characteristics), and that the fifth and final wave (E) up of V up looks finished, or is close to finishing. If so, this means that the coming Grand Supercycle degree wave {IV} down is starting or will soon start, and will be much worse than what we have seen over the past decade.

This price pattern is looking more and more like a textbook Megaphone topping pattern. The slope of the top and bottom boundary lines is identical in reverse, and authentic since the lines are drawn off two top and two bottom points, which adds to the probability that this pattern is occurring.

This pattern has appeared at many of the major tops over the past century.

The next chart shows a pattern that is a strong possibility for stocks, and suggests a multi-year Rising Bearish Wedge is occurring now, which started at the 2009 low, and wave c-down of D-down is about to start (a top for the July 17th and July 28th Phi mate and Bradley model turn dates). It would take the Industrials down to the 11,500ish area, and at that point I would suspect the Fed would announce QE3, possibly in late September or October in time for the election. Then a strong wave E move up would ride the QE3 euphoria, which would also catapult precious metals and mining stocks. That wave E top would arrive either in December 2012 or early 2013 when a massive stock market collapse begins.

There is some speculation in this scenario, but it does tie a lot of pieces together. The bottom of this wave c-down and D-down wave could come at our next phi mate turn date.

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shall not hunger, and he who believes in Me shall never thirst.
For I have come down from heaven,
For this is the will of My Father, that everyone who beholds
the Son and believes in Him, may have eternal life;
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John 6: 35, 38, 40